Canadian Pacific Kansas City Limited (NYSE:CP) Declares C$0.27 Quarterly Dividend

Key Points

• Canadian Pacific Kansas City declared a C$0.268 quarterly dividend, payable October 26 to shareholders of record September 25. The dividend implies an annualized payout of approximately C$0.77 per share and a 1.2% yield.
• The company reported quarterly EPS of $0.92, exceeding analyst expectations of $0.89, while revenue rose 12.6% year over year to $2.93 billion. Its dividend remains well covered, with a 23.6% payout ratio.
• Institutional investors hold 72.2% of CPKC’s shares, with several major funds—including Norges Bank and Janus Henderson—recently increasing or initiating positions.

Canadian Pacific Kansas City Limited (NYSE:CP - Get Free Report) TSE: CP declared a quarterly dividend on Wednesday, July 29th. Shareholders of record on Friday, September 25th will be given a dividend of 0.268 per share by the transportation company on Monday, October 26th. This represents a c) annualized dividend and a yield of 1.2%. The ex-dividend date of this dividend is Friday, September 25th.

Canadian Pacific Kansas City has decreased its dividend payment by an average of 0.0%annually over the last three years. Canadian Pacific Kansas City has a dividend payout ratio of 23.6% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect Canadian Pacific Kansas City to earn $4.30 per share next year, which means the company should continue to be able to cover its $0.77 annual dividend with an expected future payout ratio of 17.9%.

Canadian Pacific Kansas City Trading Down 0.4%

Shares of Canadian Pacific Kansas City stock opened at $91.35 on Thursday. Canadian Pacific Kansas City has a 12-month low of $68.42 and a 12-month high of $93.95. The firm has a market capitalization of $80.84 billion, a price-to-earnings ratio of 28.19, a PEG ratio of 1.83 and a beta of 1.10. The company has a current ratio of 0.67, a quick ratio of 0.57 and a debt-to-equity ratio of 0.46. The firm's 50 day simple moving average is $89.18 and its two-hundred day simple moving average is $83.88.

Canadian Pacific Kansas City (NYSE:CP - Get Free Report) TSE: CP last posted its earnings results on Wednesday, July 29th. The transportation company reported $0.92 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.89 by $0.03. Canadian Pacific Kansas City had a net margin of 27.20% and a return on equity of 8.86%. The firm had revenue of $2.93 billion during the quarter, compared to analysts' expectations of $2.89 billion. During the same period in the previous year, the business posted $1.12 EPS. The business's revenue was up 12.6% compared to the same quarter last year. Analysts predict that Canadian Pacific Kansas City will post 3.69 EPS for the current year.

Institutional Investors Weigh In On Canadian Pacific Kansas City

A number of hedge funds and other institutional investors have recently made changes to their positions in CP. Norges Bank acquired a new position in shares of Canadian Pacific Kansas City during the 4th quarter worth about $978,558,000. Janus Henderson Group PLC grew its holdings in shares of Canadian Pacific Kansas City by 586.1% during the fourth quarter. Janus Henderson Group PLC now owns 6,147,835 shares of the transportation company's stock worth $452,781,000 after purchasing an additional 5,251,755 shares during the last quarter. FIL Ltd grew its stake in shares of Canadian Pacific Kansas City by 20.2% during the fourth quarter. FIL Ltd now owns 16,666,777 shares of the transportation company's stock valued at $1,227,045,000 after purchasing an additional 2,804,686 shares during the last quarter. Bessemer Group Inc. boosted its holdings in Canadian Pacific Kansas City by 5,826.3% in the first quarter. Bessemer Group Inc. now owns 2,545,049 shares of the transportation company's stock valued at $199,605,000 after acquiring an additional 2,502,104 shares during the last quarter. Finally, Canoe Financial LP boosted its stake in shares of Canadian Pacific Kansas City by 45,389.7% in the 1st quarter. Canoe Financial LP now owns 2,032,478 shares of the transportation company's stock valued at $159,885,000 after purchasing an additional 2,028,010 shares during the last quarter. 72.20% of the stock is owned by hedge funds and other institutional investors.

Canadian Pacific Kansas City Company Profile

Canadian Pacific Kansas City (CPKC) is a North American Class I freight railroad formed through the combination of Canadian Pacific Railway and Kansas City Southern. The merged company operates an integrated rail network that spans Canada, the United States and Mexico, providing a single-line rail connection across all three countries. This transborder footprint is intended to streamline cross-border freight flows and provide shippers with direct rail access from Canadian and U.S. production centers to Mexican markets and ports.

CPKC's core business is freight transportation and related logistics services.

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